Prayagraj, Aug 22 (PTI) The Allahabad High Court has rejected the bail applications of a former chairman and managing director of the Uttar Pradesh Cooperative Construction and Development Ltd who are accused in alleged misappropriation of MGNREGA funds.

In 2014, the Lucknow Bench of the Allahabad High Court directed the CBI to investigate the alleged misappropriation of funds and the abuse of power under MGNREGA in Balrampur, Gonda, Mahoba, Sonbhadra, Sant Kabir Nagar, Mirzapur and Kushinagar districts of the state between 2007 and 2010.

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The CBI registered a criminal case and following an investigation submitted a charge sheet against Bhikhari Singh, the then chairman of UPCCDL and its then managing director Vinod Singh.

During the court proceedings, the counsels of the applicants contended that the allegations were baseless.

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Rejecting the bail applications of the two accused, Justice Samit Gopal said, "There was a conspiracy within the society for swindling the funds received as an advance in which the accused persons succeeded."

"The state exchequer thus suffered a loss with equal personal gain to the accused persons by not doing the allotted work in spite of money being paid in advance," the court said.

In its order dated August 18, the judge observed, "Looking at the positive nature of evidence, the charge sheet submitted against the applicants and the previous criminal antecedents, I do not find it a fit case for bail."

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)